According to ISO 55000, what is asset management?

• A. Organized activities to realize the value from the assets
• B. Maintenance planning and execution
• C. A system to track depreciation
• D. Optimization of spare parts inventory

Answer: (A)

Asset management, as ISO 55000 defines it, is the coordinated activities of an organization to realize value from assets through their lifecycle. It means making strategic decisions and taking actions that balance performance, risk, and cost to achieve organizational objectives. It isn’t limited to a single task like maintenance, nor is it just a financial function such as tracking depreciation. It also isn’t only about inventory levels; while maintenance, financial tracking, and spare parts management support asset value, the overall discipline is the holistic, lifecycle-focused management of assets to maximize value.